Treasury sanctions business network suspected of aiding Hezbollah’s military activities

Jul 10, 2014
Deb Riechmann, The Associated Press

WASHINGTON – The Treasury Department on Thursday targeted a procurement network suspected of helping Hezbollah, an Islamic militant group based in Lebanon.

Treasury sanctioned Kamel and Issam Mohamad Amhaz and the brothers’ electronics business in Beirut called Stars Group Holding, the company’s subsidiaries in Lebanon, China and the United Arab Emirates and managers and individuals linked to them.

“With disturbing reach far beyond Lebanon, Hezbollah’s extensive procurement networks exploit the international financial system to enhance its military capabilities in Syria and its terrorist activities worldwide,” said Under Secretary for Terrorism and Financial Intelligence David Cohen.

Treasury said Hezbollah has used the Stars Group Holding network to secretly buy sophisticated electronics and other technology from suppliers around the world — goods that have supported Hezbollah’s development of drones, which have been used to support its military activities in Syria and to conduct surveillance operations in Israel.

“These individuals and entities have relied on false end-user certificates, mislabeled air waybills and other fraudulent methods to avoid export restrictions and otherwise conceal Hezbollah as the ultimate end-user or beneficiary of these goods,” he said.

The sanctions ban Americans from conducting transactions with both the companies and individuals who are named and freezes any assets they have under U.S. jurisdiction.